Social competence is one of the important aspects of the human life which helps to adjust, cooperate, collaborate, and make effective relationship with others in the society. The development of social competence depends upon various factors starting from the family environment to school, peer relationship, neighbourhood, and society. The interaction between children and positive elements give positive outcomes but if there is interaction between children and negative elements then it is probably possible to get negative outcomes. Parental alcoholic addiction has its own negative effect on their children either directly or indirectly. The children of alcoholic parents may have lower social competence or the consumption of alcohol by parents may be negatively associated with their children's social competence. To address this complicacy the researcher has conducted research along with some objectives to determine the relationship and effect of paternal alcoholic addiction on social competence of the students in-relation to gender and locality. For this study the researcher has used descriptive survey cum correlational method. 120 samples were selected from 6 schools by using of stratified random sampling. Social competence scale was used in this study. Finally, the result shows the significant negative relationship between parental alcoholic addiction and social competence of the students in-relation to gender and locality. Similarly, there is significant effect of parental alcoholic addiction and social competence of the students in-relation to gender and locality.